IFC INVESTS IN CELLULAR TELEPHONE NETWORK IN ZAMBIA

WASHINGTON, D.C., November 18, 1998 ---
The International Finance Corporation today signed financing agreements
for US$5.1 million for a nationwide GSM (Global System for Mobile Communications)
digital cellular telephone network in Zambia.
Zamcell Limited will undertake the $16.9 million project to develop, install
and operate the cellular phone system. IFC will provide an equity
investment of $600,000 as well as a $4.5 million senior loan for its own
account and has mobilized $4.5 million in additional debt financing from
the Development Bank of Southern Africa (DBSA), a South African development
finance institution which operates in the Southern African Development
Community.
Zamcell was awarded a 15-year license in 1998 by the Zambian Ministry of
Communications, and will be one of two private cellular companies operating
in the country. Its shareholders are Mobile Systems International
Cellular Investments (MSI Cellular) of the Netherlands, Mitsui & Company,
Limited (Mitsui) of Japan and IFC. MSI Cellular is part of Mobile
Systems International, a U.K.-based consultancy specializing in cellular
network design and engineering. It invests in and operates cellular
networks worldwide, including in Uganda, Egypt, China, and India. Mitsui
is one of the world's largest business enterprises and has investments
in over 30 mobile telecommunications companies globally.
Mr. Declan Duff, IFC Director of Telecommunications, Transportation and
Utilities, who signed the agreement for IFC, said that with only nine phones
lines per 1000 people in Zambia, there was clearly a tremendous need for
additional telecommunications services which Zamcell would help fill by
providing a reliable and efficient network. This first IFC investment
in the Zambian telecoms sector would contribute to the upgrading of the
country's infrastructure while encouraging more private initiatives, he
added.
IFC, part of the World Bank Group, fosters economic growth in the developing
world by financing private sector investments, mobilizing capital in the
international financial markets, and providing technical assistance and
advice to governments and businesses. To date, IFC has invested $2.3
billion in telecommunications projects worldwide, of which $1 billion was
for IFC's account.